USAID’s Local Capacity Development Efforts: Past and Present

The report reflects the views of the USAID or the United States Government. Local capacity development efforts are made possible by the generous support of the American people through the responsibility of the United States Government. The report is divided into two parts: an historical perspective and a present-day analysis. The historical perspective provides an overview of USAID's policy, planning, and programming context, including U.S. national and global interests, policy and programming changes, and new directions in democracy and governance. In the 1990s, USAID's partnerships with non-governmental organizations (NGOs) and local NGOs (LNGOs) evolved, with the establishment of the Office of Private and Voluntary Cooperation (PVC). PVC's role and objectives included supporting NGOs and LNGOs in their capacity development efforts. PVC programs focused on capacity building, institutional strengthening, and community development. The Development Grants Program (DGP) was also established to support local capacity development. DGP provided grants to NGOs and LNGOs to support their capacity building efforts, with a focus on institutional strengthening and community development. USAID's approaches to local capacity building included capacity development (CD) approaches, which focused on building the capacity of local organizations to manage and implement development projects. Other embedded CD examples included USAID's support for volunteers, such as the Farmer to Farmer Program (F2F) and the Small Project Assistance Program (SPA). Funding for local capacity development was provided through various mechanisms, including loans and grants to governments, contracts, grants and cooperative agreements, and funding to local organizations. Implementation and procurement reform (IPR) changes were also implemented to improve the efficiency and effectiveness of USAID's local capacity development efforts. USAID's organizational structure was also reformed to improve the agency's ability to support local capacity development. Regional and country coordination was strengthened, and sector-based technical assistance and service delivery functions were established. In the present day, USAID continues to support local capacity development through various initiatives, including the Bureau for Democracy, Conflict, and Humanitarian Assistance (DHCA), the Bureau for Economic Growth, Agriculture, and Trade (EGAT), and the Office of Conflict Management and Mitigation. These initiatives focus on building the capacity of local organizations to manage and implement development projects, with a focus on democracy, human rights, and governance, economic growth, and conflict management. The report concludes by highlighting the importance of local capacity development in achieving USAID's development goals. It emphasizes the need for continued support for local capacity development efforts, including funding, technical assistance, and institutional strengthening. The report also provides an overview of current USAID mechanisms for local capacity development, including the Bureau for Democracy, Conflict, and Humanitarian Assistance (DHCA) and the Bureau for Economic Growth, Agriculture, and Trade (EGAT). These mechanisms focus on building the capacity of local organizations to manage and implement development projects, with a focus on democracy, human rights, and governance, economic growth, and conflict management. Overall, USAID's Local Capacity Development Efforts: Past and Present provides a comprehensive overview of the agency's efforts to support local capacity development in the past and present. It highlights the importance of local capacity development in achieving USAID's development goals and emphasizes the need for continued support for local capacity development efforts.